Summary analysis: Top 30 OIC Halal Products Companies list
Salaam Gateway, in partnership with DinarStandard, presents a debut list of top 30 halal products companies based in OIC (Organization of Islamic Cooperation) member countries.
While OIC markets represent majority of the $1.595-trillion halal food, pharmaceuticals and cosmetics consumer market, recent DinarStandard data indicates that non-OIC countries continue to dominate exports of halal products to OIC states.
The 'Top 30 OIC Halal Products Companies' list illustrates a rich mix of large regional enterprises that offer strong footing to champion strategies for halal market growth across the 57-member trade bloc.
The rankings featured key countries from Southeast Asia, South Asia and the GCC, with Indonesia dominating the list with 15 companies.
Malaysia came at a distant second with five firms, followed by Saudi Arabia (4) and the UAE (2). The companies were judged on their intra-OIC exports and halal market initiatives.
Biofarma Indonesia topped the rankings, while Malaysia’s Duopharma Biotech, Indonesia’s Indofood CBP Sukses Makmur and PT Paragon Technology and Innovation, and UAE’s Al Islami rounded off the top five.
Southeast Asian halal products companies held the highest representation on the list, having leveraged an expansive Muslim population, rising consumer halal awareness, regional trade links and conducive regulations overseeing local halal industries. Government regulations supporting halal certification for food, pharmaceuticals, and cosmetic products, have created tailwinds for halal products companies, propelling them to serve 240 million Muslims, who form a formidable consumer force.
GCC halal industry companies are also thriving, with a rise in population, growing government-led initiatives for food stability and promotion of homegrown brands.
However, unlike Southeast Asian halal industry companies, GCC-based firms are primarily concentrated in the halal food sector. Four Saudi halal food companies have made it to the ranking, including Bateel, Almarai, Savola, and Americana. Retail giant Lulu Group, alongside Al Islami originate from the UAE.
Observations suggest that increasing halal awareness and compliance beyond food has been on the rise over the years, particularly in Southeast Asia. Furthermore, more companies are integrating ESG (environment, social, governance) as well as halal as part of their business value proposition.
Halal food: Spotlighting palm oil from Southeast Asia and meat processing from GCC
Palm oil is billed as one of the largest and most important commodities exported by OIC countries. Indonesia and Malaysia are not only the world's largest palm oil exporters, but also integrate halal compliance into some of their products. Palm oil producing companies such as FGV, Sinarmas, and Musim Mas, have made it to the ranking.
Meanwhile, the halal food industry across OIC countries primarily leverages expansive and growing markets such as Indonesia and Saudi Arabia. Indofood, the largest Indonesian food processing company and the world's largest noodle producer, ranks third in the list and tops halal food peers. Halal meat processing and dairy producers based out of the GCC, such as Savola, Almarai, Americana and Al Islami, have also found space on the list.
Halal pharma: Southeast Asia dominates the space
The pharmaceutical industry is a knowledge-intensive arena where halal compliance requires long-term commitment and technical capabilities.
Halal vaccines and biopharmaceuticals have gained momentum since the Covid-19 pandemic, and industry players aim to sustain the momentum.
Although the number of pharmaceutical companies in this category remains limited, we have observed several prominent pharmaceutical companies with strong halal compliance and capabilities.
Biofarma, the largest vaccine producer in Southeast Asia and the OIC centre of excellence for halal vaccines, leads the ranking. Duopharma, one of the leading halal pharma companies in Malaysia, ranks next, for its efforts in driving halal innovation and spreading awareness of halal pharmaceuticals.
Halal cosmetics: Well-established local brands come to the fore
Original OIC cosmetic brands are growing, with prominent names such as Paragon, BeautyHaul, Victoria Care and Conatural Beauty marching into the mainstream.
Some players expanded their halal product offerings to a wider segment, such as Paragon with the launch of Kahf, a halal self care and cosmetics brands for men.
Aside from well-established corporate cosmetics brands that boast a long history, there is also a growing trend of emerging local brands which gained recent significant success, such as Somethinc from Beauty Haul, an Indonesian halal beauty startup backed by Sequoia Capital.
